Weave Overview Q1 2025 NYSE : WEAV MAY 2025 1 Safe Harbor Statement This presentation has been prepared by Weave Communications, Inc. ("Weave", "we", "us", or "our") for informational purposes only and not for any other purpose. This presentation contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995 that are based on our management's current expectations and projections about future events and financial trends that we believe may affect our financial condition, re ...

Weave Communications (WEAV) Q1 2025 Earnings Call May 05, 2025 04:30 PM ET Company Participants Mark McReynolds - Head of Investor RelationsBrett White - CEOJason Christiansen - CFOTimothy Greaves - Equity Research Associate Conference Call Participants Alex Sklar - AnalystBrent Bracelin - Sr. Research AnalystParker Lane - AnalystMichael Funk - Analyst Operator Ladies and gentlemen, greetings and welcome to the Vii First Quarter '20 '20 '5 Financial Results. At this time, all participants are in a listen on ...

Financial Data and Key Metrics Changes - Q1 revenue grew 18% year over year to $55.8 million, marking the thirteenth consecutive quarter of exceeding guidance [14][23] - Gross margin improved to 72.1%, a 170 basis point increase year over year [14][26] - Operating income for Q1 was $39,000, an improvement of $1.4 million year over year [28] - Adjusted EBITDA for Q1 was $1 million, improving by $1.4 million year over year [28] Business Line Data and Key Metrics Changes - Record sales in the Medical segment, particularly in MedSpa and plastic surgery, with strong performance in primary therapy [14][24] - Payments revenue continues to grow at more than twice the rate of total revenue, contributing positively to the business [25][82] - Retention metrics remained stable with Net Revenue Retention (NRR) at 98% and Gross Revenue Retention (GRR) at 91% [25] Market Data and Key Metrics Changes - The acquisition of TrueLark expands the addressable market to over $10 billion in the U.S. [7][19] - New integrations launched in Q1 increased the integrated market by approximately 60,000 locations [15] Company Strategy and Development Direction - The acquisition of TrueLark is aimed at enhancing the product roadmap and expanding market opportunities [12][20] - Focus on automating workflows and improving patient engagement through technology [8][12] - Continued investment in R&D and sales/marketing to drive growth and customer acquisition [21][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business amid economic challenges, with no degradation in lead flow or pipeline [50] - Anticipated core business growth in 2025 to outpace 2024, despite a tough year-over-year revenue comparison in Q2 [30][31] - The company remains focused on revenue growth, operational efficiency, and maintaining positive free cash flow [32] Other Important Information - The company ended Q1 with $98.2 million in cash and short-term investments, with plans to use $25 million for the TrueLark acquisition [28] - The acquisition is expected to close in Q2 2025, with performance-based equity awards tied to revenue milestones [19][21] Q&A Session Summary Question: Incremental value of TrueLark to existing bundles - Management highlighted joint customers and the revenue-driving potential of TrueLark, emphasizing its automation capabilities [36][37] Question: Specialty medical growth and hiring plans - Management confirmed strong Q1 performance in specialty medical and anticipated further growth in the back half of the year due to increased sales capacity [40][41] Question: TrueLark's pricing model and monetization opportunities - TrueLark's product is primarily sold on a per-location or per-contract basis, with opportunities for reevaluation of pricing strategies [45][46] Question: Resilience of the pipeline amid economic challenges - Management reported no degradation in pipeline metrics and expressed optimism about the integration of TrueLark enhancing their market position [49][50] Question: Competitive landscape and AI opportunity - Management noted a clear vision for their product roadmap and highlighted TrueLark's established customer base and proven ROI as competitive advantages [55][56] Question: Vertical penetration and economic sensitivity - Management indicated less than 15% penetration across all verticals, with dental being the most penetrated and specialty medical the least [68][71] Question: Customer acquisition cost and go-to-market strategy - Management confirmed ongoing efforts to refine the go-to-market strategy to reduce customer acquisition costs and increase sales velocity [75][76] Question: Payment solution attach rate - Management noted that the payment solution currently makes up less than 10% of revenue but is growing faster than overall revenue [80][81]